>> good morning. nejra cehic. manus: i'm manus cranny live in dubai. this is daybreak europe and these are the top stories. nejra: canada joins the u.s. and mexico in talks that went down. >> what can you tell us about the deal? [inaudible] talk to you guys tomorrow. the u.k. prime minister faces the battle of her political life to sell her brexit plan.

role buts chairman stays on as ceo. the company is on the cusp of making money. ♪ manus: let's get straight to our top story. u.s. and canada agree on a trade deal. josh, good to see you this morning. what other surprises? is it around the auto numbers and exemptions? that's what stands out for me. josh: i think so. that's the one takeaway canada wanted to get with this that was holding up talks. why are we going to sign a deal if you knock us over the head with tariffs? canada exports 1.8 million cars. they won't face tariffs until they get above 2.6 million cars.

that's if they do face tariffs. a bit of breathing room, otherwise it's what people thought it would be, canada giving up dairy access and exchange for u.s. concessions, particularly on preserving chapter 19 pursuit panels, an arcane thing, but canada thinks is important in this david and goliath relationship. nejra: talk us through what happens next. great to hear from you. josh: thank you for having me and sorry, i look like a wet dog so sorry to call you by phone. what's next is this has to be signed and voted on. the leaders will sign it at the end of november. the big question is, will this get through congress? it's almost certain to get through the next congress, which polls show will be more democratic than the current one. are the democrats going to pass

this thing? could he tried to use leverage like quitting the current deal to force them to bring about? we don't know. the next battle is moving from the negotiating room to the hall of congress. nejra: thank you so much to bloomberg's josh in ottawa. 6:03 in london. let's get you caught up with the markets overnight in asia. china and hong kong are closed. mixed picture. a little bit weaker, australia offsetting gains in japan. we heard about the u.s.-mexico-canada agreement. you can see the canadian dollar reacting, the best performer against the dollar. the mexican peso rising. 128.46.ap trays at up .5%above 83 on brent,

after we heard reports on the weekend president trump was talking to saudi arabia. we are getting a lift from crude today. manus: there is one other major story, apart from trade, that we will cover extensively. it's about italy, the difference between what the finance minister once and what we were told. i put together the doom loop. the sovereign bonds and bank of italy is fiercely mistaken. it's alive and well. two of the major banks. i want to put it in context. it's a sobering reminder of risk, but nowhere near the menace of 2011-2012. we've moved a country mile in breaking that relationship, but it's not over the bond markets.

is there higher to go on that? will the bond spread pop higher? complex is that you have a review by the ratings agency at the end of october. it's on negative watch. s&p comes out and of october. goldman sachs is warning about a slice of capital. it's not going despite, but it's nothing like the sovereign ricks and bank risks in 2011. this is going to start the fourth quarter with quite impassioned bid tones to markets. nejra: in u.s. stocks, we saw the backorder since 2013 even though the s&p closed friday flat. futures are getting a lift. s&p and nasdaq trading higher. we are getting a list from --

lift from this nafta deal. we have had trade stories moving forward on another front. the biggest story is the u.s. and china. we'll talk a lot more about that throughout the show. manus: that impacts the leaders of industry. take it away. nejra: that's right. we've got the tipping crude ceo. he's joining us in a few minutes time. lots of questions. the business will be split into two separate businesses. question over how that will work, whether it will result in job losses, and what we might see in terms of biggest shareholders. they've given an initial shareholder reaction, but what will they want from here? are we going to see further pressure or are they satisfied? let's get the bloomberg first word news, juliette saly in

singapore. juliette: the u.s. and canada have agreed on a trade deal that would preserve a three-way block with mexico. it will be called the and-mexico-canada agreement will replace the 24-year-old nafta pact. it sets the stage for the three countries leaders to sign the accord by the end of november. team hasrump's t pushed back against reports they have laid out ground rules for the investigation on brett kavanaugh. he ordered the investigation on friday into sexual assault allegations against him. the move marked a turnabout for the nominee the party had hoped to power through the chamber and onto the nation's top court. >> the white house is not getting involved in the fbi investigation in that way. the president respects the opinion on the fbi and feels

they should be looking at anything they think is credible within this limited scope. juliette: theresa may is facing the battle of her political life at the governor conservative party annual conference. top politicians try to undermine her leadership, including boris johnson. he's described her brexit strategy as deranged. but she and her team renewed their call for the party to support the checkers plan. >> at the heart of the checkers plan is the free-trade deal, free-trade area, and frictionless trade. it ensures we maintain guarantees with northern ireland. with no harm to northern ireland and ireland. checkers is the only plan on the table that delivers on the brexit vote in the way i set out. juliette: global news, 24 hours a day on air and at tic-toc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries.

you can find more stories on the bloomberg at top . the start of a new quarter for asian trade and it's generally weaker. we have hong kong and china out of action. ostrow is market offsetting these gains on the nikkei 225. they are getting close to the 27 year high. it will be interesting to see if it closes at that level on friday. the two not be an earthquake weighing on jakarta's index. coming under pressure although the pmi was better than some others in the asia region today. in terms of stocks we are watching, the main reason why the asx 200 is low is because of the big banks. the biggest the stock by market cap. this is as the banks fold in response to the inquiry. they face compliance costs and a risk of credit crunch. we are seeing good moves and

south korea in tourism stocks. that's on expectations the weeklong holiday and china will boost tourism to south korea. i was mentioning a lot of weakness coming through on the jpi and indonesia following the earthquake and tsunami. this is a hotel operator down almost 13% in indonesia. manus? manus: thank you very much. the very latest on the market reactions. to the u.s. and canada, they've agreed to a tentative trade deal with mexico. the announcement sets the stage for their leaders to sign an accord by late november in a region that trades more than $1 trillion annually. gauges in the two activity in china. the manufacturing numbers worsened in september. the fallout from the trade war with the u.s. will is the head of investment strategy at barclays.

very good morning to you. the best quarter in five years in u.s. stocks. do you think the new nafta deal sets off the fourth quarter with a bit of a bang for carry crudes? will: morning. it's quite difficult to see how different the new nafta is from the old nafta. there are tweaks, but in the sense markets should receive this well because what it does do is reduce the potential for those trade skirmishes the u.s. is picking with its trade partners. it looks like something that's more with the chinese basically. while a trade war remains primarily with china, even if they go all in, it's something unhelpful for the world economy but not something that ends the cycle. nejra: jpmorgan changed its baseline scenario and things we will get 25% tariffs on all

chinese goods in 2019. they changed their call on the u.n.. they see it moving to 7/19. let me ask you whether you see that as your baseline scenario. will: i think the all in is likely. 25%. that seems to be the way. had u.s. administration has a number of problems with the way china has been conducting itself. and if caught a sympathy with the rest of the world on some of the complaints. some of the complaints of the way the u.s. is pursuing it is more about the way it's pursuing it rather than the complaint itself. things,hinese side of this made in china 2025, seems to be people reading the chinese authorities are reluctant to give up on some of these goals.

you got the prospect of a stalemate and tariffs remaining likely for some time. on the chinese side of things, authorities have the will and the means to stop the problem. that should help support the economy, even if you're seeing problems show up in the pi. manus: this cracking piece from j.p. morgan, 25% is their base case scenario. they said it will be the first re-rating of stock ratings under the trump era. but they do go on to say the u.n. will trade lower by the end of this year. we're in for the long haul and in for a much lower yuan. would you concur with that view? they are talking about breaking the level and getting around 720 by the end of next year. not making big breaks on that necessarily. certainly, the chinese authorities, it's not in their

interest to see it materially weaker. they've got levers to pull the mystically, but we're not sure if the yuan is one of those. nejra: what does this mean for your positioning around eurasia? you're sticking with that call, giving with what you said about the yuan. will: there are two things happening. one, the damage done by the trade war is finite as long as it's a bilateral. china can absorb this. you are starting to see fiscal easing coming through already and more broadly, what you find is because what you've got a strong u.s. economy and fiscal steroids coursing through the bloodstream at the moment. because the u.s. economy is going to be unable to satisfy that demand. a lot of it will spread to the rest of the world. asia will be one of the beneficiaries. basically, it looks cheap. manus: there you go.

we've got a call from will hobb s, head of investment strategy at barclays. this is bloomberg. ♪

1:18 in:18 in london, new york and u.s. features getting a lift. we have a new nafta deal. best quarter for u.s. stocks since 2013, s&p futures up .5%. let's get the bloomberg is as flash with juliette saly in singapore. its gainsoil extended after the longest quarterly

rally in a decade as a slowdown in drilling added supply risks. while the u.s. and saudi arabia discussed stability. president donald trump and the king were reported to have spoken on the phone saturday and discussed efforts to maintain supplies to ensure stability of the market and growth of the global economy. shell and its partners agreed to invest in a multibillion dollar natural gas project in canada. bloomberg lurd lng canada, comprised of shell, mitsubishi, petrochina, and korea gas, is to make a final decision as early as today. petrochina and korea gas announced approvals of this share of the investment on friday. the other partners declined to comment. i unanimously improve lantus but

the company into two units. they the restructuring, managed the automotive supplies and plant construction businesses. materials will run steel and metal operations. the ceo will join us in a few minutes time. that is your bloomberg business flash. manus, nejra. nejra: juliette saly in singapore, thank you. tesla has been forced to find an independent chairman to replace elon musk in regards to fraud charges about making the company private. they will have to add two new independent directors to oversee the tweaking and other medications about -- tweeting and other communications. musk asking you whether would reach a settlement. we got the answer to that. is this going to satisfy

shareholders, seeing as he was still have an operational role? guest: yes, i think it will. one shareholder proposed a motion which would see these exact same measures take place. more independent directors coming on board. they rejected that proposal at the time. if anything, they wanted less oversight over elon. the want to can't talk about are the ones that would be interested to invest in tesla now there is greater oversight. theprice is $420 prior to takeover and now it's $270. given this oversight, there will be more interest in getting shares. manus: this is a defining moment of one the tweet came out to say he would take the company private. it's been a one-way trip since it happened. what does elon musk need to do

to rerate the stock? is it deliver a profit as promised? alex: yes. that's basically it. what he said to his employees they are close to making a profit. i think that's on an operational level, not on a net basis. he needs to generate cash flow to fund the expansion. all these models, roadster, all these models he's planning, he needs cash to be able to do that. and they huge backlog will pay a lot of money for them. manus: thank you for joining us. the re-rating of tesla begins in earnest today. alex webb, our bloomberg opinion columnist. the advisory board splits the company into two units and named -- as the chairman.

crude industrials will manage elevators, auto supplies, and plant construction businesses. -- will run the steel and metal focused operations. the man who's been given the job for five years is the ceo. great to see you this morning. the last time myself yourself and anna edwards caught up, you said we needed strategic clarity and he needed to match your competitors. what are the biggest changes you will implement? will it be on the industrial side of the business? good morning, congratulations. guest: good morning, thank you. we want to create two companies that will clearly focused the markets. the markets, on clearly different to each other, we can create more value for our shareholders and give a clear orientation for the businesses

inside the company. we think it's a clear and strong path forward for testing crop and this strategic dilemma and the question that was there for now is now gone in relief and now we can move on and create the future. nejra: great to have you with us. thank you for joining us. as part of the strategy going forward, will we see any job losses? we have already announced a lot of programs we want to improve on profitability and the performance of our business going forward. the on that, there will be nothing -- beyond that, there will be nothing. we want to reduce corporate over the years going forward quite significantly. two significant values below the current one, which will go down. have nohat, we will additional job losses.

you,: guido, can i ask obviously there's a great deal made by the shareholders. perhaps critical of that strategy thus far. have you spoken to elliott? have you spoken to stephen? have you had conversations thus far about the strategy and your strategy? now, what we could clearly see yesterday on the supervisory board, we got unanimous support on this one. on the strategy and the nominations. foundation, asur the employees and ceo represented, there is strong risk -- strong support for the strategy. and unanimity is what is needed to make this happened, but we could find with my strategy here, this unanimity and the support of the strategy.

i'm really looking forward now. nejra: the other people we need to discuss is your biggest shareholder, the crook foundation. they said of your decision to split the business that it's convincing industrial logic. some reports over the weekend that the crook foundation aims to remain the anchor shareholder in both companies. can you confirm that this is true? it's clear with the split of the shares, and that's the way we want to create the two companies, we will provide to our current shareholder base two shares. that means all shareholders will have two shares. they will become shareholders of materials businesses and industrial businesses. then they can focus on which one they want to stay in. they will therefore have two shares and be part of both companies. manus: can you envisage spinning

off the elevator's? when we spoke before, we were in that holding pattern. can you envisage in this five-year tenure a spin off? look, i think what we now have to concentrate on is really making this split happen. as we outlined, this will take another 12-18 months. this is what we have to focus on. taking a look at our industrial businesses overall, they are participating on the same megatron's. let's not focus on making this happen, and make it successful and get the probability and performance between the two more aligned groups. earlierou were saying that you had unanimous support. we talked about activist shareholders alex and. are they pushing for anything else within the two separate businesses? what more are they pushing for?

guest: again, we've got unanimous support and -- is revisited on the supervisory board and clearly supported the strategy. -- was out there in the media on thursday, clearly stating he's supporting the way forward for thurston crop. -- thyssenkrupp. that's what i see for the shareholders. manus: this morning we had breaking news that the united andes, mexico, canada, china have a new deal on markets. what does this mean when you look at this news flow in regards to the global trade act drop? -- backdrop? update us on your sentiment, first of all. guest: most of our industrial production in the nafta region is done within the nafta region so the value creation if you look at the elevator business, a

lot of that is service business. you have to render that locally. the biggest part of our business is within the nafta region for the nafta region. compared to other companies, the facts coming out of these discussions are of less importance. theall, it's a good signal deal has been found and can only be supported on future value creation and certainty within the divisive -- the development. nejra: final question, could we see anymore m&a, anymore facilitation for the materials unit -- consolidation for the materials unit? guest: that is what we have clearly thought. we are in a strong market leading position. in steel we will have clear number two. we are clear number one in europe. that's why this entity is set up to participate in future consultations and take an active part in it. manus: the other side of the

global story is china. we had some data over the weekend, slight softening in the numbers. what can you tell us about the past three months in terms of business and sentiment and orders? guest: we have seen a slight decline in orders in the last three months, but so far the results and the fact we've seen are quite a lot less than what arenae seen in the public and the rumors about future losses in china and for the reduction. what we've seen in our business are less than the rumors. coffee, --on't care guido karekoff, thanks for joining us. dani: i want to start us off with the looney, higher by nearly .5% after canada agreed

to a new trade deal. today, this surging five-year over here, after the central bank is said to inject fresh liquidity into the markets. the one you want to focus on today besides whole milk and rice is brent crude. callings analysts are for $100 barrel oil at about $83 a barrel. we do have chinese markets closed, but one we are watching today is japan, up .5%, trading at its highest and's 1991. i want to give you -- highest since 1991. i want to give you a look, is now exceeding the levels of 70. that's the level of analysts say where it looks like it's overheating. this has exceeding the speed limit in terms of what sentiment looks like for japanese stocks. what is driving it? according to analysts, it's

clontz. what positions looks like, it's nearing a peek, which means it might have gone too far. this is a level analysts say clients are likely to take off their gas pedal. manus: thank you very much. we pick it up for what happens next in japan. for one market interpretation, juliette saly with the bloomberg first word news. good day. juliette: the u.s. and canada agreed to a trade deal that would preserve a three-way block with mexico. -- the be called the and u.s.-mexico-canada agreement and replace nafta. it sets the stage for the leaders to sign the accord by the end of november. ukip prime minister theresa may is facing the battle of her political life at the governor conservative party annual

conference, as top politicians try to undermine her leadership, including boris johnson. he's described her brexit strategy as the range. she and her team are nude the call for the party to support the so-called checkers plan -- her team renewed the call for the party to support the so-called checkers plan. >> you've got to accomplish the task that you've been interested by the people to engage with. appetitedon't see any for that kind of vision. desk kind of division -- that kind of division. targets: after initial of large investors. while the 2019 spending plan is not on the agenda in luxembourg, they are certain to face questions about the proposal of the sidelines of the closely watched talks.

withdeficit target, italian assets under intense pressure with stocks and bonds falling. the death toll from a 7.5 magnitude earthquake and tsunami that hit indonesia's island declined to more than 800. casualties are expected to reach in the thousands as authorities reach those collapsed under buildings. saying hea reports expected the told to grow as he drew comparisons between the latest quake and the tsunami that hit indonesia in 2004. the typhoon that made landfall in the western part of japan is moving northeast and has left more than 1.3 million buildings without power. much of southern and must in japan was at a standstill ahead of extreme weather. tokyo train services were

closed, though most are expected to run today. global news, 24 hours a day on air and at tic-toc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. nejra? nejra: juliette saly in much.ore, thank you so less than six months until the u.k. leaves the eu, theresa may and her checkers plan are coming under further -- from brexiteers. boris johnson has called the plan deranged. bloomberg's and edwards is there for us. great to see you. can theresa may survived the week? anna: good question. can she survived the week? she arrived in birmingham at the conference with a lot of hope that her checkers plan survives the week. that's her way of doing brexit. it's been a text from within her party and rejected in its current form by the european europe and.

-- european union. they hope boris johnson, the former secretary on the move, could potentially make a bid for leadership of the party, although any such commitment has not been made by him yet, hoping she can keep him at bay. he has been keeping her plan at bay. he supports theresa may and her checkers plan. listen to this exchange, which is when i asked him if boris johnson was getting support within the party. is boris johnson gaining momentum? is he gathering support? guest: support for what? anna: for taking brexit negotiations in another direction? guest: the only people that can do the negotiations are government and prime minister and our team that's negotiating,

and the ones in the european union. this has to be where the negotiations take place. what then comes out of that will then come to parliament, quite rightly, and parliament will have the chance to appraise the that it satisfy itself implements the decision takinenn the referendum. but does so in a way that points continuation of our current prosperity, but actually allows us to release some of those investments poised to be able to be made. that fighting could come if we can see very clearly that there is going to be this agreement. anna: but there is a risk worth johnson gets a more support and the plan you are backing anza not being the plan? we're in the early stages of it, but i sense a really palpable commitment to

the idea that part of the responsibility of being a government is that you've got to unite, you've got to keep a cool head, and you've got to accomplish the task that you've been interested by the people to engage with. appetitedon't see any for that kind of division. it's been quite the reverse. anna: could we see the end of theresa may's leadership? guest: quite the reverse. i think what you've seen already here is a strong sense, from the conversations i've had around the conference, to the reaction to statements made in the hall, you can tell that this party has always taken its role seriously and government. and now is the time where we need to do that. and that is what the party i think overwhelmingly wants. anna: that was greg clark

keeping the face, backing the checkers plan, the plan theresa may has set out for brexit, suggesting only the government can do the negotiation, not from the back benches. theresa may fights for her survival in birmingham. we speak to john glenn in an hours time, the treasury minister. even though there's no deal, there will be chaos. we talk about that later on. manus: thank you very much. i'll pick it up from here. sometimes the back benches make more noise. a little bit of breaking news, 565 million euros. that is the price tag that casino will get there to sell another of assets. if you want to know what that is, it's about 19 assets in paris. this is part of the real estate that they are selling. euros.lion a little bit of guidance for

trading profits. 2019, retailve and trading profit will improve. and they are seeing retail trading profit in france in 2019 to improve. their overall retail profit will improve. a little bit of guidance from their. we'll see how that stock trades on the open. let's get back to will. anna set the stage for brexit and the battering that has become. theresa may has done it in in 2016. she took it back to 1985 levels. she battered it because of her performance last year, where pieces of the set fell off behind her. and just how risky is sterling going into this week? will: it's risky stuff. this is one of the problems

you've got for investors. there's no doubt since the summit, the probability of a hard brexit has risen a little bit. how much is a matter of some debate. the problem with hard brexit is that it could be inflationary or deflationary depending on whether if it's the supply side or demand-side. it's going to be difficult to tell in real-time. how do you plan for that as an investor? had the react as the bank of england? -- how do you react as the bank of england? we're trying to maintain as neutral a position in our portfolio. luckily, u.k. stocks and bonds don't care much. the sterling is difficult. nejra: another issue that's been difficult, and we saw another reaction to italy friday. they have to sell italy's budget to eurozone counterparts. i've got a counter -- chart on the bund spreads.

this was pointed out by cameron crise, one of our bloomberg strategists, saying since the early 1990's, you have three situations. full-blown panic and above 300 basis points, situation normal, and no man's land. we're in no man's land right now. he says we won't stay there for long. if we don't, which way do we go from here? will: you've got rating agencies coming up toward the end of the month. is it moody's 26, something like that? then you got the showdown, october 15, when they submit the budget to the european commission. the november 1 they come back. it's difficult to call. that may put more pressure on bcp's. from the european commission perspective, ti's hard to see them picking a fight. if you're looking at the french budget, that looks like a

deficit relative to gdp. seems like something they are not going to pick a fight over. the risks in italy are considerable. our bets is they're priced in. banks trading about half book now. there's a lot in the price. manus: let's pick up on that and reflect. i was making the point about the deficit. i put it in the dtv library. -- g tv library. i also compared it to the cds is. i get the sense that it's probably more the stock vigilantes than the bond vigilantes. you say you need a strong constitution for italian banks. how strong is your constitution this morning? do you pick them up on these kinds of trashing's that we've had? will: the main thing about italian banks is you have to be very brave to own them. within the context of a

diversified portfolio, there's always room for harry trade. italy constitutes a harry trade, one that's worth taking. proportionally, you've got to be measuring this against safer bets elsewhere. italian banks are part of that. nejra: still the question about whether -- is a finance minister. will hobbs, investment strategy at barclays, stays with us. you can watch the show using tv as well as a video stream. you can follow all of our charts and functions. you can message a strictly or ask the guests. we have will hobbs with us with -- with us for the hour. manus: get your questions in. hairy trades included. one man that has an opinion on banks is this gentleman. he joins nejra and myself for

the first interview of the day. this is bloomberg. ♪

nejra: today, the number of banks deemed too big to fail will grow from seven to eight. the new arrival is no day of bank, which is moved to helsinki. the move was driven by regulatory consideration and a wish to be inside the european banking union. joining us on the phone from helsinki is the ceo of nordea bank. great to have you with us. thank you for joining us. your desire to be inside the banking union. dennis banks expressed concern about joining the banking union, in part because they are having worries about having to salvage europe's struggling banks. why does that not worry you? guest: at the largest bank in

the nordic region, we have markets in sweden and denmark where we are a leading bank and all four countries. we need to have the same competitive conditions that our european peers. the stability, predictability, and level playing fear with the largest players in europe. in that sense, it's a very natural step for us to take. manus: we've touted you this morning, as a mega-bank. you're now too big to fail. we've spoken to you several times about the decision and getting their. take me forward. how much bigger you want to make nor dale -- nordea? what is the benchmark for growth? guest: there's a lot about being big. it's about being able to compete on a level playing field.

we are nordic focused at the moment. is to becometegy truly digital to serve our customers in the nordic regions. there's a lot about it that that'stself and usually not a good sign for me. this is about focus and being able to compete and ultimately serve our customers in the best way. about sizeay not be and self now you are in the eurozone. there are potential consolidation opportunities. what does the future hold for nordea in terms of consolidation? guest: we did an acquisition in norway, bought a smaller, more digital bank. our strategy is now very nordic focused. our strategy is to compete the

transformation we are doing with systems,eplacing core becoming truly digital. consolidation is something one follows, but it's not on our agenda for the time being. it is all about focus and delivering on what we have promised and delivering on transforming the banks to become truly digital. that is all we are doing and we are confident we can deliver on that. consolidation is not really on the agenda for us at this point. manus: i want to get your perspective. the italian banks are very much loopcus and there's a doom between sovereigns and banks is back. how do you look at what is going on in italy and casper now that you are part of the family? is,t: i think the key here

and of course it's a risk reduction. before we have risksharing, we need more risk reduction and we have two steps completed in the banking unit from a supervisory mechanism in place. we have the resolution, and of course more steps need to be taken. but before the steps need to be taken, we need risk reduction. manus: how do you reduce risks in the bank? guest: i think it's just hard steps in taking down nonperforming loads, making sure that you have a viable operating model, a strategy that you can make money. i think banks need to be strong, well-capitalized, and profitable. it is about, i would say cleaning up and that's something that's well underway. it may take some time, but it's

better to take the time than rush it, in terms of putting more common responsibilities. we need risk reduction before taking the next steps. this is a journey. we have achieved a lot in the last few years with having the banking union in place. nejra: should the ecb raise rates before the and of summer, 2019? guest: that's for ecb to decide. i'll refrain from that. manus: you'll never know what happens. let's see what mario can do for you. good luck with the move. we wish you well. you finally got there, the ceo from nordea joining the mega-bank club. nejra: let's check in on what's trending on tictoc.

shinzo abe once 30% of japanese business leaders to be women by 2020, but change has been slow so far and only 4% of managerial positions are held by women in the country. manus: bloomberg.com, theresa may, she is trending, facing a political battle of her life to maintain control of the uk's conservative party. seems to be the event every year. the annual conference begins today. the prime minister and her brexit plan come under increasing attack from the eurosceptic politicians. nejra: and our most read stories, third-place nordea bank moves headquarters to helsinki from stockholm. we just spoke to the ceo. the second, it unless pushes has the employees to make as many cars as possible. at the top, u.s. and canada agree on a trade deal. find out more across all bloomberg's reference now. manus: oil is very much in

focus, extending its gain after the longest quarterly rally in nearly a decade. that's the slow down in american drilling added to supply risks. president trump and king abdullah discussed it during a phone call saturday. will hobbs is our guest host this morning, head of investment strategy at barclays. this splendid run in the oil market. almost seems, it's as if this market is very tight. as i said to one of our middle east guests, just one step away from a really real tightening of the screw of $100 oil. will: yeah, it feels closer than might have been argued a few years back certainly. for us, it doesn't feel that likely. $100 still feels some way off.

low oil prices were good for the economy, transfer of wealth from the few to the many. the other way around is also true. wealthare transferring from the many to the few, you should see the marginal propensity go up a little bit. there should be a tax on the u.s. economy. but the stock market may feel differently. if you look at the number of companies on the s&p, the ftse in particular, that enjoy high oil prices, those that don't care or do care or on the other side, a lot of those are in favor of height oil prices. slightly bad for economic growth. nejra: we're out of time. thank you so much to will hobbs. thel be continuing conversation with us at 7:30 a.m. u.k. time. callista virus joins us for an exclusive interview at 4:00 p.m. u.k. time. this is bloomberg. ♪